Correlation Between Foods Inns and COSMO FIRST
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By analyzing existing cross correlation between Foods Inns Limited and COSMO FIRST LIMITED, you can compare the effects of market volatilities on Foods Inns and COSMO FIRST and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Foods Inns with a short position of COSMO FIRST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foods Inns and COSMO FIRST.
Diversification Opportunities for Foods Inns and COSMO FIRST
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Foods and COSMO is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Foods Inns Limited and COSMO FIRST LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMO FIRST LIMITED and Foods Inns is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Foods Inns Limited are associated (or correlated) with COSMO FIRST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMO FIRST LIMITED has no effect on the direction of Foods Inns i.e., Foods Inns and COSMO FIRST go up and down completely randomly.
Pair Corralation between Foods Inns and COSMO FIRST
Assuming the 90 days trading horizon Foods Inns Limited is expected to under-perform the COSMO FIRST. But the stock apears to be less risky and, when comparing its historical volatility, Foods Inns Limited is 2.61 times less risky than COSMO FIRST. The stock trades about -0.15 of its potential returns per unit of risk. The COSMO FIRST LIMITED is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 88,450 in COSMO FIRST LIMITED on October 10, 2024 and sell it today you would earn a total of 9,590 from holding COSMO FIRST LIMITED or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Foods Inns Limited vs. COSMO FIRST LIMITED
Performance |
| Timeline |
| Foods Inns Limited |
| COSMO FIRST LIMITED |
Foods Inns and COSMO FIRST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foods Inns and COSMO FIRST
The main advantage of trading using opposite Foods Inns and COSMO FIRST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foods Inns position performs unexpectedly, COSMO FIRST can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in COSMO FIRST will offset losses from the drop in COSMO FIRST's long position.| Foods Inns vs. Nestle India Limited | Foods Inns vs. Britannia Industries Limited | Foods Inns vs. TATA SUMER PRODUCTS | Foods Inns vs. Patanjali Foods Limited |
| COSMO FIRST vs. California Software | COSMO FIRST vs. Pritish Nandy Communications | COSMO FIRST vs. Hi Tech Pipes Limited | COSMO FIRST vs. Kaynes Technology India |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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